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Credit terms =Net 30. Gross sales =$1,000,000 80% pay on Day 30. 20% pay on Day 40. Bad debt losses =2% of gross sales. Operating

Credit terms =Net 30. Gross sales =$1,000,000 80% pay on Day 30. 20% pay on Day 40. Bad debt losses =2% of gross sales.

Operating cost ratio =75%.

Cost of carrying receivables =12%.

If the tax rate is 30%, how much is the net income?

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